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and maybe a motorcycle. we have to be more flexible. and this out of the box we start custom fizzing this application and we've been working very hard on doing data clean up and data testing began last week. the feedback has been positive and people have suggested a lot of good ideas. is goal is to launch the product on the week of february 4th. any questions? >> that was great. do any of the department's have
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any of the forms that could be filed out online >> i don't know. >> i think right now to my knowledge some have the smart pdf where i can fill in the information but can't submit it. the entertainment commission is one of the department's i know that is really moving toward online submission of applications and payments >> since nobody has these yet nobody can do this now; right? and the individual departments have implementing their forms as and see fit and we would like to
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be able to reroute applications. and this ties into the concept of - and moving forward how do we budget this to be efficient and the user - we need to have the budget to facility that for all departments and that's part of the discussion we've had and we'll have a retreat around this to - so we can have a unified deliver of the product >> commission reeling. thank you do i have to go on the
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small business commission website in order to go to this business 1, 2, 3? yes is reason why we would like to be able to send people to this website to all the various information. we're going to have a link on the main business line . we'll have others links on others websites >> you mentioned that we have to put in their names and their information what happens when the person opens the website but they don't have the business name yet.
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>> if you don't have a business name you can put down their home address and this is wonderful how can we introduce this is the public? >> we will be doing some sort of a press release with the mayor. if not we might be able to have a pickup address >> and we will be reaching out to 0 our neighborhood development organizations, you know, renaissance and the enter center. >> so all those entities that we do business with - many of their clients can ulysses this
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information to find out what information they that need. >> and also having a partisanship of these sites will drive people back to our website and linked to the product. >> that's great. >> that was in my question so you are working with the department of public opinion health and we can all like? >> yeah. >> any other questions. >> thank you jane what a great job. >> public comment? a no one. it's closed. i feel like we're coming into the 21th century
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>> this is a really good job, long overdue. >> one quick question are you still looking for data testers. >> no, but send them to me we're ready to a launch. >> and when you're ready to launch i'd like to do the press conference. >> we'll keep you updated. >> and we maybe can bring the chamber into this - yeah, and other - that would be great. >> i i want to bring it to
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everything's attention jane has done a good job. >> under for a second and drink all those categories we have to review each one and making sure u making sure it had all the licenses and permits that were required or removal of some that inadvertently got in. >> we going to came back the media on these things and we're starting the discussion on this so i'll keep you, you updated on this. but the thought the commission
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should see a product presentation friend of mine us >> how many preparations are there? how many forms are required >> it would be nice to know how many forms would be on the site and i think that would go along way in the presto express how big a job this is and how much this brings together in one place. how many categories of business. people like to think oh, small business owner but it's maybe 55 categories and this may be a complicated one and fin facts
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but they write articles about this >> great job. >> next item please. commissioners item 8 discussion on proposition e this is a discussion item >> so commissioners we've been fielding questions through our office and other business organs of wanting a review about prop e i thought today would be a good time to go over some basics. if there's any concerns, what's ahead because i'm sure you'll be fielding some questions as well. and while there is a good deal of work happening in the background like the transition of the different payroll tax
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incentiv incentives. the tax and treasures office is beginning their implementation but the basic concepts are we we need to help business prepare for a transition. so in your binder is a - is information that we've put together so that if i go to a business association that i hand this out to walk them through. some of this i'm going to highlight on some of this. let's go to the first slide.
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next thank you. so as your well aware that now we have a 1.5 percent payroll for businesses in the city that have payroll over $250,000 i should say 2 hundred and 50 thousand one dollars. of a business is under 2 hundred and 50 thousand they don't pay the payroll taxed. so the grois receipts will phase over a 5 year period starting the tax year of 2013 so next year. and this phase is is to low both businesses and the city to have
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a smooth transition so that if for any reason the gross receipts is not bringing in as much money we are operating as a deficit but it the gross receipts is coming in a herself we might phase in in a shorter amount of time. thank you. and the schedules are broken out into four tiers there's a zero to one million and it's exempt and 2 had the to million and above. so businesses will be taxed at the progressive tier so if
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you're a business that has $3 million in revenue your first million is not taxes your million to 2.5 million is talked at the 2 to 2.5 million taxable followup u amount eaten the last $500,000 will be taxed. so here's an example i mean chris has provided a good example so one million will be taxed? one million taxed the 1 tier rate did i misquote that i
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miss stoke so once you reach over one million that first million is taxable. so correction. and then as i noted there's a small business under one million gross receipts is exemption in the gross receipts. the one is particularly for the business fee will increase in 2014 for all businesses and i think what i'd like for you to do is flip to page 2. where i see the charts. and so for 2014 to 2015 the base
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payroll there will be a new business fee and then two 15 the set business register fee will be under two schedules so businesses in schedule one >> yes. >> i have is question. is there any you type of outreach that's going to be done >> there will be and at this time, the controllers office is working on are developing plans for this and our outreach will happen after we go after june or july of 2013 because they're still developing things like the
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tax credits and how that will be applied. who you get into some of the larger entities there's bigger structures and that needs to be careful communicated so that when the time for outreach there's one package of information going out. so the tax and treasurers office have additional staffing for that >> commissioner reeling. >> so of a small business the gross receipt is less than 1 million it's exemption. >> right the first million is
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not exemption so if you will look at page 2. the whole 2 million is taxable >> yeah, but it's at a different taxable rate. so if you look at that page once you reach over a million that million is a taxable minimum >> so for schedule one 1.75 percent of - the first million is at - the 5 hundred thousand is taxable at the 1 point percent tax rate. >> commissioner. >> what about the businesses that are a combination of the
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manufacturing and other businesses structure. >> right so going back to i think i think this is where we need to work this out. we're not going out and educating businesses right now. the likelihood you'll by looking at the bigger side of our business >> director i believe if more than your business is one second for it will be taxed at a different rate and i make everything i sell. so i'm making it and selling it.
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right but you're also whole sailing >> yeah, but wholesale and retail are in the same bracket. by definition the - so i look like a retailer but i'm a manufacturer if you proportion the dollars >> well, is your margin bigger than air manufacturing costs it will be interesting to find out how they find this.
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>> look by definition your whole sailing it and selling it. >> not every manufacture will have a manufacturer presence. >> yeah, so this is - anyway pointing out. >> again we're not going out and promoting this yet base we're still talking about this and there will be an awe apportionment but they'll be some guidelines on. >> i have a question. saying there is a small business
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exemption for gross receipts less than one million but on the second page it shows the gross rates is from zero to one million i'm confused >> once i makeover a million then your taxed on that million but as long as your taxed - the first million is you're paying taxes on but if you're not making one million you're not taxed. >> as you keep going up the tier the one million is taxed on
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the section tier the taxable amount the tiers remain the same. prevents stepping so when i cross a boundary and the rate goes up or down there's no incontinuity. >> this goes in effect in 2014. there is one business who wants to hire but basically they'd have to wait until 2014 and there is a schedule the phase in schedule will still have 2014 is
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10 percent is gross receipts the remaining will be payroll tax. the - if they're under $500 in pay role they may be able to apply the pay role exemption tax. >> there probably are some cases where your taxes will be greater than but if you're hiring people you're going to get it in the payroll see or the - you're going to pay the taxes in the year 2014 but if you want
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to make a determination if you wait i'll be able to avoid this. you'd want to know they might decide oh, the new tax is so moo much better for me, i think i'll wait. this is interesting conversation >> right so neo fourteen and neo fourteen it keeps on going up. 2017, 75 percent gross receipts payroll tax and so forth
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>> so that is the phase in period. but remember we already phased in the mayors suggestion >> so in this information i know you say that they're working on it with the tax collectors office, can we put this on the website to educate? at least the schedule. as i look at this thing there is a gross receipt rates and the phase in and as a business owner i'd like to know this >> so for the members of the pick up the document is available under small business
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assistance. tab there's a link to gross tax information and. there's a direct link to this document if you'd like to punch >> i see chaos between gross receipts now what does it mean it 10 percent gross receipt tax? what's the equation there? >> well, what we will do as the tax and treasuresers office there has been some discussion
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about online tools and to help businesses figure this out. so as we get closer we'll check in with this and see if they're ready to do a presentation >> this will pail in comparison to have someone figure out this prorated schedule. i know what i have to pay a examiner cpa to do this >> at least maybe an amnesty program come later and is well,
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you should have known. >> maybe we can come up with a straight online calculator but this period 2014 and up sees complicated to me. >> which is why it is good for us as a commission that we're having this discussion so that you have the abilility to think and we're going to work with other departments on this. great. my comments are meant to be critical but educational. we're going to be pulling out hair out for a few years >> once we go to all gross
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receipts that will be another story but the phase in will be tough. >> how can we minimize this to help understand this complicated process. >> well, certainly me and whoever else - well, what other businesses do we have? the restaurant business. and take us through that process so we can anticipate some of the questions >> and i'll have a cigarette way into this we can have a more robust discussion and i'llbe

February 3, 2013 5:30pm-6:00pm PST

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